NEW YORK (TheStreet) -- Part 1 of 4
Electronic cigarettes, commonly called e-cigarettes, are becoming more and more common. From relative obscurity five years ago, e-cigarettes have grown to $500 million in sales in 2012, and over $1.5 billion in 2013. The growth in the market is expected to continue, with e-cigarettes sales expected to top traditional cigarettes sales within the next decade.
How can investors profit from this trend?
There are a number of ways to take advantage of the growth in the e-cigarette market. Investors who seek exposure to e-cigarettes can buy into the larger tobacco companies. They are now entering the market, following on the heels of smaller start-ups. Lorillard (LO) ($48.00 at market close on Friday, Feb. 14), Altria (MO) ($35.57 at last close) and Reynolds American (RAI) ($48.21 at last close) are all major cigarette companies. But for now, e-cigarettes are a very small portion of their overall revenues. Smaller companies such as Vapor (VPCO:OTC, $5.78 at market close on Friday, Feb. 14), Victory Electronic Cigarettes (ECIG:OTC, $13.50 at last close) and mCig (MCIG:OTC BB, 33 cents at last close) offer pure play access to e-cigarettes. In addition, mCig offers access to investing in the legalization of marijuana -- though it is also a penny stock, and inherently very risky. What Are E-Cigarettes? An e-cigarette is a battery-operated alternative nicotine delivery system. E-cigarettes have a replaceable inhaler cartridge containing vegetable glycerin and/or polyethylene glycol, flavoring and nicotine. With every inhalation, a sensor triggers a "vaporizer" to heat a small amount of liquid flavoring. The liquid turns to vapor and is drawn into the user's mouth and then lungs. The vaping technology of e-cigarettes does not burn anything. The liquid mixture is simply vaporized. The vapor does not contain the harmful additives found in true smoke from hookahs or cigarettes. The replaceable cartridges come with different nicotine levels. Each is equivalent to 2 packs of cigarettes. HowStuffWorks has created a visual on the anatomy of an e-cigarette.
Top Recreation Stocks For 2015: NET Servicos de Comunicacao S.A.(NETC)
Net Servicos de Comunicacao S.A., through its subsidiaries, provides cable television, Internet access, and voice services in Brazil. It offers cable television services under the ?NET? brand name through various cable networks located in the largest cities of Brazil. The company also offers broadband Internet access services under the ?NET VIRTUA? brand name by using Embratel's IP backbone infrastructure. In addition, it provides voice services under the ?NET FONE VIA EMBRATEL? brand name jointly with Embratel. Further, the company offers integrated video, broadband, and voice services. Net Servicos de Comunicacao S.A. was founded in 1994 and is headquartered in Sao Paulo, Brazil.
Advisors' Opinion:- [By Vanina Egea] offers bundled services and has aggressively expanded its Internet and TV subscriber base in the state.
Investing for Long-term Growth
Looking forward, Telefè´¸nica Brasil is investing in technology and network expansion to further empower its competitive position. The firm is expanding its 3G network based on CDMA EV-DO and HSPA technologies, which provide a great advantage over its peers. Further, it expects to benefit from the growth opportunities in the 4G market. Consequently, it has signed a deal with Ceragon Networks Ltd. (CRNT) to deploy the superfast 4G network nationwide.
A Valuable Stock
Telef贸nica Brasil has a healthy balance sheet with strong cash flow generation (up to 9,576 million in 2013 from 3,488 million in 2011) and reasonable debt levels. Its net debt-to-EBITDA ratio is of 0.17 times and it has a debt- to-equity ratio of 0.2 against its peers��average of 0.9. Its financial strength and a robust dividend have attracted investment gurus like Charles Brandes (Trades, Portfolio) and David Dreman (Trades, Portfolio), who have recently incorporated the company to its portfolio.
Considering the stock�� trading price of 14.6x its trailing earnings compared to the peer group average of 16.90x, and a compelling dividend yield of 7.30 with a payout ratio of 1.1 (against its competitors��median of 3.53 and 0.62, respectively), I believe this stock is a worthy investment opportunity with excellent growth potential.
Disclosure: Vanina Egea holds no position in any stocks mentioned.
Also check out: Charles Brandes Undervalued Stocks Charles Brandes Top Growth Companies Charles Brandes High Yield stocks, and Stocks that Charles Brandes keeps buyingAbout the author:Vanina EgeaA fundamental analyst at Lone Tree AnalyticsVisit Vanina Egea's Website
Currently 5.00/512345Rating: 5.0/5 (1 vote)
Voters: Subscribe via Email Subscribe RSS Comments Please leave your comment: $(do
Top Penny Stocks To Invest In 2014: Himax Technologies Inc.(HIMX)
Himax Technologies, Inc., together with its subsidiaries, designs, develops, and markets semiconductors for flat panel displays. Its products include display drivers and timing controllers for various thin film transistor liquid crystal displays (TFT-LCD) panels, which are used in desktop monitors, notebook computers, televisions, and mobile handsets, as well as consumer electronics products comprising netbook computers, digital cameras, mobile gaming devices, portable DVD players, digital photo frame, and car navigation displays; and TFT-LCD television and monitor semiconductor solutions. The company also provides liquid crystal on silicon (LCOS) products for palm-size mobile projectors; power management integrated circuits, which include drivers, amplifiers, DC to DC converters and other semiconductors; complementary metal oxide semiconductor image sensors for camera-equipped mobile devices, such as mobile phones and notebook computers with a focus on lowlight image and video quality; and wafer level optics products. It serves TFT-LCD panel manufacturers, mobile device module manufacturers, and television makers. Himax Technologies, Inc. was founded in 2001 and is headquartered in Tainan, Taiwan.
Advisors' Opinion:- [By Monica Gerson]
Himax Technologies (NASDAQ: HIMX) soared 4.20% to $8.19 in the pre-market trading after the company reported Q1 earnings of $0.09 per share on revenue of $194.60 million.
- [By Stephen Quickel]
Himax Technologies (HIMX)
Operating out of Taiwan, Himax makes liquid crystal on silicon semiconductors for flat panel displays. Analyst upgrades have spurred trading volume. Our target price is $20.
Top Penny Stocks To Invest In 2014: Mad Catz Interactive Inc(MCZ)
Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes accessories for videogame platforms and personal computers (PC), as well as for iPod and other audio devices. Its products include videogame, PC, and audio accessories, such as control pads, video cables, steering wheels, joysticks, memory cards, light guns, flight sticks, dance pads, microphones, car adapters, carry cases, mice, keyboards, and headsets. It markets its products primarily under the Mad Catz, Saitek, Cyborg, Eclipse, Joytech, GameShark, Tritton, and AirDrives brands. The company also develops flight simulation software; operates flight simulation centers under its Saitek brand; operates a videogame content Website under its GameShark brand; publishes games under its Mad Catz brand; and distributes games and videogame products for third parties. It distributes its products through retailers in the United States, Europe, and Canada, as well as in Australia, Japan, Korea, New Zeal and, and Singapore. The company was founded in 1989 and is headquartered in San Diego, California
Advisors' Opinion:- [By Bryan Murphy]
If the name Mad Catz Interactive, Inc. (NYSEMKT:MCZ) rings a bell, it might be because yours truly penned some bullish thoughts on the video-gaming hardware (joysticks, control pads, headsets, etc.) back on August 20th. Neither MCZ nor my write-up were received as anything partially special at the time - it was just another stock dissected by just another guy, and you may or may not have given it a second thought. The 37% rally in the meantime, however, may garner a little more attention.
Top Penny Stocks To Invest In 2014: Helios Advantage Income Fund Inc. (HAV)
Helios Advantage Income Fund, Inc. is a close ended fixed income mutual fund launched and managed by Brookfield Investment Management Inc. The fund invests in the fixed income markets of the United States. It invests a majority of its assets in below investment grade debt securities, which are bonds rated Ba1 or lower by Moody's Investors Service, Inc., BB+ or lower by Standard & Poor's Ratings Group. The fund benchmarks the performance of its portfolio against the Barclays Capital U.S. Corporate High Yield Index and the Barclays Capital Ba U.S. High Yield Index. It was formerly known as RMK Advantage Income Fund, Inc. Helios Advantage Income Fund, Inc. was formed on November 8, 2004 and is domiciled in the United States.
Advisors' Opinion:- [By Tom Stoukas]
Havas SA (HAV) surged 6 percent to 5.82 euros, its largest rally in 14 months. The French advertising company reported first-half profit of 58 million euros ($77 million), beating the average analyst estimate of 55.9 million euros.
- [By Namitha Jagadeesh]
Havas SA (HAV) lost 1.6 percent to 5.78 euros. Barclays Plc downgraded the French advertising company to equal weight, similar to neutral, from overweight, citing the need to ��ause for breath��after its strong performance over the past three months. Havas climbed 28 percent from a June 24 low through yesterday�� close.
Top Penny Stocks To Invest In 2014: Homeowners Choice Inc.(HCII)
Homeowners Choice, Inc., an insurance holding company, provides property and casualty insurance in Florida. The company provides property and casualty homeowners? insurance, condominium owners? insurance, and tenants? insurance to individuals owning property. It serves approximately 59,500 policyholders primarily through independent agents. The company was founded in 2006 and is headquartered in Tampa, Florida.
Advisors' Opinion:- [By CRWE]
Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, reported that its board of directors has declared cash dividends of 5.833 cents per share on its Series A Cumulative Redeemable Preferred Stock (“HCIIP”) for the months ending September 30, October 31 and November 30, 2012.
Top Penny Stocks To Invest In 2014: Micron Technology Inc.(MU)
Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still c ameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.
Advisors' Opinion:- [By Mr. TopStep]
The Asian markets closed mostly lower (Hang Seng -1.68%) and in Europe 9 out of 12 markets are down. This week’s economic schedule picks up slightly from last week’s; there are 21 economic releases, 12 T-bill or T-bond announcements or auctions, and no Fed speak. Today’s economic schedule starts with the the Chicago Fed National Activity Index, PMI Manufacturing Index, existing home sales, 3- and 6-month T-bill auction and earnings from Micron Technology (NASDAQ: MU) and Sonic Corp. (NASDAQ: SONC).
- [By Nicholas Vardy]
Here's why I expect Micron Technology (MU) to move up even further in the weeks ahead.
First, Micron is in an enviable position in the otherwise boom-and-bust semiconductor sector.
No comments:
Post a Comment